The convention between France and Kenya was signed in Nairobi on December 4, 2007, and entered into force on November 1, 2010. It covers only income taxes. Its rates on dividends, 8% or 10%, are based on the most-favored-nation clause of Article 28. The MLI (Multilateral Investment Agreement) has amended it since November 1, 2025, for other taxes and since January 1, 2026, for withholding taxes.
A 2007 text, updated by the clause in Article 28 and the MLI
The administrative list (BOI-ANNX-000306, dated April 29, 2026) classifies it as "IR" (Income Tax) and makes no mention of inheritance or gifts. It was approved by Law No. 2010-840 of July 23, 2010, and published by Decree No. 2010-1371 of November 11, 2010. List BOI-ANNX-000511 (same date) gives November 1, 2025, for other taxes and January 1, 2026, for taxes withheld at source. Article 2 § 3 refers, for France, to income tax, the CSG (General Social Contribution), the CRDS (Contribution to the Repayment of the Social Debt), corporate income tax, and payroll tax.
Maximum deductions and key rules
| Subject | Article | What the text says |
|---|---|---|
| Dividends | 10 § 2 a) | 8 % of the gross amount if the beneficial owner is a company (excluding partnerships) that directly holds at least 25 % of the capital |
| Dividends, other cases | 10 § 2 b) | 10 % of the gross amount |
| Interests | 11 § 2 | The tax cannot exceed 12 % of the gross amount |
| Royalties | 12 § 2 | The tax cannot exceed 10 % of the gross amount |
| Capital gains (other assets) | 13 § 4 | Assets other than those in paragraphs 1, 2 and 3: taxable only in the State of which the transferor is a resident |
| Salaries, exception | 15 § 2 | A stay not exceeding 183 days during a period of twelve consecutive months commencing or ending in the fiscal year; an employer who is not a resident of the other State; an expense not borne by a permanent establishment or fixed base |
| Pensions | 18 | Pensions and other similar remuneration paid to a resident: taxable only in that State, the State of residence of the beneficiary, subject to Article 19 § 2 for public pensions. |
| Double taxation (France) | 22 § 1 a) | Tax credit deductible from French tax, capped at the corresponding French tax; Kenyan tax is not deductible from this income |
Dividends: 8 % and 10 %, resulting from the most-favored-nation clause
The rates of 8 % and 10 % and the threshold of 25 % are set out in the body of Article 10 § 2. Note 9 specifies that these provisions apply in accordance with Article 28, following the Kenya-South Korea Convention which entered into force on April 3, 2017. The BOFiP update of December 27, 2023 indicates that this clause lowered the withholding tax rate on dividends to 8 % or 10 %, applicable from April 3, 2017.
Article 28: any lower rate granted to an OECD country
If Kenya concludes, after the convention, an agreement with an OECD member state providing for an exemption or a lower rate than those in Articles 10 § 2, 11 § 2 or 12 § 2, this regime shall automatically apply to dividends, interest or royalties.
Who is a resident?
Article 4, paragraph 2, first considers the State of the permanent home. If the center of vital interests cannot be determined, it examines habitual residence in both States, then the nationality of both States. Failing that, the competent authorities decide the matter by mutual agreement (paragraph d).
Salaries: twelve consecutive months attached to the fiscal year
The 183-day period referred to in Article 15(2)(a) is a period of twelve consecutive months that begins or ends during the tax year in question. The employer must not be a resident of the other State, and the remuneration must not be borne by a permanent establishment or fixed base there.
What this page does not cover
Capital gains on real estate, self-employment (Article 14), the amicable settlement procedure, and the exchange of information are not detailed. Kenyan law is not addressed: its validity is determined by consulting a local professional.
Frequently asked questions
What is the withholding tax rate on dividends between France and Kenya?
8 % of the gross amount for a company directly holding at least 25 % of the capital, 10 % in other cases (Article 10 § 2), pursuant to the clause in Article 28.
Does the France-Kenya convention cover inheritances?
The administrative list of April 29, 2026 classifies it as "IR" alone, and article 2 does not name any inheritance rights.
Since when has MLI been in effect?
On November 1, 2025 for other taxes and on January 1, 2026 for taxes withheld at source, according to the list of April 29, 2026.
Take stock of your situation
Balmont Conseil, a firm based in Lyon for nearly 14 years, assists executives and families whose assets or business activities connect France and Kenya. To discuss your situation, please schedule an appointment.
Alexis SagnierFinancial and real estate investment advisor, insurance broker, AMF certified
Founder of Balmont Conseil, Lyon (ORIAS 13003497)
Read also
- Tax treaties: countries linked to France
- Dividends paid to a non-resident: withholding tax of 12.8% %
- Foreign capital income: tax credit and form 2047
- Double taxation: tax credit and effective tax rate
- Leaving France: exit tax, tax residence, procedures
- Foreign address: inform the tax authorities of your departure
Official sources
- BOFiP doctrine, France-Kenya agreement (BOI-INT-CVB-KEN): https://bofip.impots.gouv.fr/bofip/3023-PGP.html
- Consolidated text of the convention (MLI and most-favored-nation clause): https://www.impots.gouv.fr/sites/default/files/media/10_conventions/kenya/nid_26934_kenya_modifiee_cml_clause_npf.pdf
- List of tax treaties (BOI-ANNX-000306): https://bofip.impots.gouv.fr/bofip/2509-PGP.html/identifiant=BOI-ANNX-000306-20260429
- List of agreements modified by the MLI (BOI-ANNX-000511): https://bofip.impots.gouv.fr/bofip/14854-PGP.html/identifiant=BOI-ANNX-000511-20260429
